Your home is more than four walls. It’s where your family comes together, where memories are made – and, perhaps, how you have a big philanthropic impact.
Although we think a lot about our homes and possessions, too often we don’t see real estate as a potential charitable tool. But remember: if you own a home, it’s probably your biggest financial asset.
There are many benefits to donating real estate, and the Delaware Community Foundation can be a wise partner in the process. The first step is for a potential donor to start a conversation with their trusted financial advisor.
Although a more complex asset than cash or stocks, real estate is also a tax-efficient and financially-advantageous way to make a difference. Also, when someone decides to donate – not sell – a property, the tax benefit may be better than if they had sold the property and donated the proceeds.
With most real estate donations, DCF will liquidate the property and use the proceeds to create or add to a charitable fund. In order to donate real estate, which must be approved before acceptance, the only two items on a donor’s to-do list are 1) arrange for an initial environmental assessment and assessment, and 2) think about their goals. charities.
A gift of property could be rooted in a family home or something else entirely. Maybe at some point you bought land with the intention of building a dream retirement and continue to pay property taxes even though your goal has changed. Or maybe rental property isn’t as easy to manage anymore. Instead of sitting on your books, these properties could be turned into philanthropic tools.
Choosing to donate real estate and support a philanthropic goal can also be a simple and meaningful choice for people with specific concerns about their properties and financial assets.
For example, a person without an heir or who does not want to impose such decisions on their executor could bequeath assets to the DCF in their estate plan. Donations of real estate may also include levels of environmental protection if, for example, a donor wishes their property to continue to be a natural, open space.
With options like these, it’s especially important to start conversations about real estate donations now. A real estate donation can take a few months to process, and donors should ensure they have enough time to reflect and navigate the process before the end of the year.
Speak with your financial advisor to start the conversation about how you can donate real estate in partnership with DCF. You could soon be setting up a meaningful charitable fund with the potential to make a big impact on an area you care about.